Proton considers tie-up with firms<\/p>\n
Agence France-Presse, Kuala Lumpur<\/p>\n
Malaysia's national carmaker Proton is in talks with three
\nforeign firms, including Britain's MG Rover group, for possible
\ntie-ups but will not rush to sign on a strategic partner, a
\nreport said Monday.<\/p>\n
Proton chief executive Mahaleel Ariff was quoted by the New
\nStraits Times as saying that MG Rover was one of the parties in
\npotential \"technical exchanges\" and Proton was looking at
\nsupplying car platforms to the British carmaker.<\/p>\n
In return, he said Rover could provide some of its own
\nplatforms to Proton.<\/p>\n
Mahaleel said Proton would not be hasty in its search for a
\nforeign partner as it must ensure that any strategic tie-up would
\nbenefit the domestic car industry in terms of technology, foreign
\ninvestment, employment and exports.<\/p>\n
Japanese giant Mitsubishi Motors remains a \"technical partner\"
\ndespite its recent withdrawal after two decades and Proton also
\nhas strategic alliances with the British Lotus Group, which it
\nowns fully, and French automaker Renault, he said.<\/p>\n
Mahaleel said he was not concerned that Proton had not managed
\nto establish a global brand name for itself since its inception
\nin 1983 as part of Malaysia's drive into heavy industry.<\/p>\n
\"The South Korean car industry started in the 1960s and it
\ntook them 40 years to get this far. You're asking us to be world
\nchampion at half time ... we've still got another 20 years to go
\nto where they are today,\" he said on Proton's failure to copy the
\nSouth Korean carmakers' success.<\/p>\n
Mahaleel said Proton would invest five billion ringgit
\n(US$1.32 billion) over the next five years to research and design
\n\"new breakthrough\" cars to become a world class producer.<\/p>\n
The company employs some 10,000 people worldwide, including
\nsome 1,400 research and design engineers, and needs another 300
\nengineers in the next 18 months to boost its technological
\ncapabilities, he added.<\/p>\n
Proton has aggressive plans to put up to 20 new models on the
\nroad over the next decade to become a medium-car powerhouse and a
\nmajor player in Asia, despite competition from Thailand which has
\nemerged as a regional assembly hub for car manufacturers, the
\nreport said.<\/p>\n
State investment arm Khazanah Nasional, the single largest
\nshareholder, is said to be considering plans to allow a foreign
\ncarmaker to hold up to 20 percent equity in Proton after
\nMitsubishi Motors bailed out recently.<\/p>\n
Trading house Mitsubishi Corp. still holds another 7.9 percent
\nin Proton and is believed to be in talks to sell it to Khazanah.<\/p>\n
Former premier Mahathir Mohamad, who was recently appointed
\nadviser to Proton after retiring last October, has said a foreign
\npartner was crucial but warned Proton must not be surrendered to
\nforeign control as this would jeopardize Malaysia's status as an
\nauto manufacturer.<\/p>\n
Analysts have said it could be a long hunt for a Proton
\npartner unless the government was willing to trade in its dream
\nof a national car industry for a pragmatic foreign tie-up.<\/p>\n
Proton used to sell six out of 10 new cars in the country but
\nits market share plunged to 49 percent in 2003 from 60 percent in
\n2002 as sales tumbled to 155,420 units.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/proton-considers-tie-up-with-firms-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}